Companynews // 02/23/2001

Gerolsteiner Group again grows faster than the market

In the year 2000, the Gerolsteiner Group - Germany's largest well association - sold 8.97 million hl (1999: 8.34 million hl) of mineral water and soft drinks, thus increasing the previous year's result by 7.6 percent. With 434.9 million German marks (199: 398.3 million German marks) turnover was increased by 9.4 percent. This excellent result once again sees the Gerolsteiner Group considerably above the industry's growth.

Gerolstein, 23 February 2001. In the year 2000, the Gerolsteiner Group - Germany's largest well association - sold 8.97 million hl (1999: 8.34 million hl) of mineral water and soft drinks, thus increasing the previous year's result by 7.6 percent. With 434.9 million German marks (199: 398.3 million German marks) turnover was increased by 9.4 percent. This excellent result once again sees the Gerolsteiner Group considerably above the industry's growth.

According to the market research institution Nielsen, the value based market share increased to 11.7 percent in the year 2000 (1999: 11.1 %). This means that every ninth mark spent by consumers on mineral water in Germany is spent on products by the Gerolsteiner Group.

These excellent results are to a high degree determined by the 1.0 liter PET reusable bottle for mineral water. The Gerolsteiner Group sold almost 200 million bottles of this type last year.

The volume of investments in tangible assets amounts to 70.4 million German marks. The annual average regarding the number of staff employed by the Gerolsteiner Group was 1,036 employees.

 

Excellent results by Gerolsteiner

 

With a sales plus of 9.2 percent the Gerolsteiner Brunnen GmbH & Co., Germany's largest single well, was able to present very good results. The well had total sales of 7.07 million hl of mineral water and soft drinks (1999: 6.5 million hl). The company's total turnover grew by 11.8 percent to 343 million German marks.

 

Gerolsteiner brand name products are becoming increasingly popular

The brand Gerolsteiner mineral water was able to fortify its position due to intensive brand management as well as due to the introduction of the 1.0 liter PET reusable bottle in 1998. The company now has a value based market share of 9.3 percent (1999: 8.7 percent).

 

Germany's largest exporter of mineral water

 

The Gerolsteiner Well also holds top position as an exporter of mineral water. Sales went up by approximately 14 percent to 178,000 hl. With an export share of approximately 27 percent, more than a quarter of Germany's mineral water exports are conducted by Gerolsteiner. The major regions for export are the Low Countries and North America. Gerolsteiner's market share of German mineral waters in the USA is about 80 percent.

 

Affiliates also show positive development

 

The Glashäger Brunnen GmbH, Bad Doberan, was also able to fortify its position. With a market share of 27 percent, the mineral water company is undisputed market leader in Mecklenburg-Western Pomerania. The 105 employees managed to generate a net goods turnover of 25.3 million German marks - a plus of 0.7 percent. Sales remained the same at 551,000 hl.

The Saxon market leader Margon Brunnen GmbH (Müglitztal near Dresden) also shows a stable upwards trend. In the year 2000 sales increased by 4.3 percent to 774,000 hl, parallel to the development on the Saxon market. Turnover came to 37.9 million German marks.

As in the previous year, the Birresborner Phönix Sprudel GmbH in the Eifel generated a turnover of 6.8 million German marks, selling 127,000 hl of mineral water and soft drinks.

The Bad Pyrmonter Mineral- und Heilquellen GmbH & Co. was again able to increase sales by 4.2 percent to 451,000 hl. The turnover amounted to 21.4 million German marks.

 

Outlook 2001

 

The restructuring efforts conducted last year, that follow a strategic reorientation of the Gerolsteiner Group, inspire positive expectations for the future. "We have redefined the leadership principle between centralism and de-centralism within the association of companies", explains Dr. Peter Traumann, chairman of management for the Gerolsteiner Group. The adopted measures led to the optimization of business processes and especially to a stronger integration of the to East German affiliates into the group association. The Bad Pyrmnter Brunnen is soon to be sold off, since it is of no strategic significance to the new alignment of the group.